Enrich your classroom today with dynamic, engaging activities! Create your free teacher account now.

Savings vs Investment: Understanding the Difference

(*) ★ ★ (*) ★ ★ (*) ★ ★ (*) ★ ★ (*) ★ ★ ( 4.2, 96 students)
image
  • Price per Classroom$2.00
  • Grade Levels 7, 8, 9, 10
  • Topics Investment
  • Duration 20 Minutes
  • Auto Scored? Yes
  • Teacher Evaluation Needed? No

Activity Description

In this hands-on worksheet activity, students will gain practical insights into the dynamics of savings and investments over varying timeframes. The primary objective is to understand how the same initial amount allocated to both savings and investments can perform differently based on the investment duration and to understand the risk involved in investments. There are three schemes that students will compare -

  1. Savings scheme
  2. Investment scheme that gives positive returns
  3. Investment scheme that gives negative returns

Activity Steps:

  1. The student will decide the amount of money and the decided money will be allocated for three schemes equally (one savings scheme and two investment schemes)
  2. Students will select different investment durations using a slider (0 - 20 years)
  3. For different durations given, students will analyze which scheme gives the best returns.

Key Takeaways:

Students will understand that savings schemes always give predictable returns and are of low risk, while investment schemes involve a risk that sometimes may give negative returns, but they are capable of giving multifold returns.



Learning Objective

Students will learn to differentiate between savings and investment options by comparing the performance of a steady savings scheme and two investment schemes with varying returns. Through this activity, students will analyze how different investment durations affect returns, recognize the potential risks and rewards associated with investments, and understand why long-term investments can outperform traditional savings despite short-term fluctuations.

Teacher Tips

Included with the activity, you can view the tips to clarify student's doubts or to evaluate answers (for a teacher scored worksheet).
image
  • Price per Classroom$2.00
  • Grade Levels 7, 8, 9, 10
  • Topics Investment
  • Duration 20 Minutes
  • Auto Scored? Yes
  • Teacher Evaluation Needed? No

More Activities You Might Like

Inflation: Calculating Effective Interest Rate

Students will understand that if they don't invest their money, the value of money will reduce over time due to inflation.
  • Auto-Graded

Simple Interest: Saving For Your Dream House

Students will use the simple interest formula and its variations to find the interest, principal to be deposited, and the interest rate they should be looking for to get $100,000 after 10 years for their dream house.
  • Auto-Graded
$2.00 $10.00/Classroom

Retirement - Start Saving Early

Students will explore the total interest that can be earned by launching saving endeavors at different ages with a goal of retiring at the age of 65.
  • Auto-Graded

Invest For The Long Term - Risk Management

In this worksheet, students analyze the historical share prices of Chipotle Mexican Grill to understand long-term investment benefits. They will learn to look beyond short-term fluctuations, focusing on how patience and persistence can lead to potential growth in investments.
  • Auto-Graded